AkzoNobel

Passion for Paint and Commitment to Carbon Reduction

COP26 has raised the global climate ambitions. 137 countries out of 192 are signatories to the UN Climate Convention, accounting for 80% of global emissions and pledging to achieve net-zero emissions by the year 2050. Thus, sustainability corporations all over the world have been also making strong commitments to achieve the carbon reduction goals. AkzoNobel committed to becoming a carbon-neutral company by 2050. Now we are turning this ambition into reality by setting aspirational, science-based targets.

Pioneering carbon reduction As a focused paints and coatings company, for decades, sustainability has been an important part of the way we do business. But we want to go even further. So we have a truly meaningful purpose, with People. Planet. Paint. as our beating heart. It’s about being a responsible global citizen, looking for solutions to help tackle key global issues and engaging in collaborative innovation throughout our value chain, validated by SBTi (Science-based targets)

Science-based targets To ensure that our sustainability targets are aligned with the Paris Agreement, we became the first paints and coatings company to ask the SBTi for validation. It confirmed our status as the first paints and coatings company to receive this approval and is a clear signal of our intent.

The commitment we’ve made covers the full value chain and is aligned with the Paris Agreement – which aims to limit global warming and ensure that global temperature rise doesn’t exceed 1.5˚C above pre-industrial levels. This includes our own operations (Scope 1 and 2), as well as Scope 3 upstream and downstream. Scope 3 covers purchased goods and services, application and use of our products, and end-of-life.

We set the carbon reduction target for our own operations in early 2020 – we’ve targeted a 50% reduction by 2030 – and remain well on track, having reduced our footprint by 21% in 2021 (baseline 2018).

Our Scope 3 carbon footprint is currently at 14.5 million tons. It includes: Upstream: purchased goods and services (including packaging)

Downstream: processing of sold products; Category 11 – use of sold products; end-of-life treatment of sold products and VOC emissions in processing/use.

Sustainable Solutions: In 2020, we set an ambition to increase revenue from sustainable solutions to more than 50% by 2030. We decided to focus not only on our eco-premium solutions that offer significantly better sustainability benefits compared with mainstream solutions, but to focus on all solutions that bring sustainability benefits to our customers.

We call this overall category “Sustainable solutions”. We changed focus due to the global growth in market demand for more sustainable solutions.

Our products fall into one of three categories: Sustainable solutions, Performers and Transitioner By focusing on the sustainability benefits we offer, we continue to influence the growing acceptance of more sustainable solutions in our markets. We work closely with our suppliers and customers to deliver these products and services, while ensuring economic value at every stage. We identify the sustainability value we bring to our customers by using the Sustainable Product Portfolio Assessment (SPPA) framework. We co-developed the SPPA with other chemical companies and the World Business Council for Sustainable Development (WBCSD). It’s now the leading sustainable portfolio framework tool in the chemical industry. The SPPA gives a holistic view of the sustainability characteristics of our product portfolio. Together with our customer-focused product stewardship process, it enables value-selling strategies tailored to specific customer needs. So, we can take a harmonized approach in our portfolio management, creating a unique baseline for future portfolio ambitions.

A sustainable solution does not adversely affect any of these sustainability criteria throughout the value chain. In 2021, 39% of our revenue came from sustainable solutions. We launched new products with clear sustainability benefits and further reduced the use of chemical substances of concern. Several examples of sustainable solutions can be found in the Strategy and operations section. 74% of our total portfolio has been assessed according to the SPPA methodology, the remainder is extrapolated, based on the sustainable solutions percentage of the relevant business unit. During the year, our product management teams continued to work on the SPPA categorization, while focusing on new product developments.

Product stewardship is our approach to ensuring product safety and its sustainability aspects are considered throughout the value chain – from raw material extraction, R&D, manufacturing, transport, marketing and application, through to end-of-life. Our Product Stewardship Continuous Improvement Tool (PSCIT) helps monitor and drive continuous improvement. And our highly acclaimed Priority Substance Program continues to help us identify and control the use of hazardous substances. It’s embedded in our processes and ensures we’re ahead of any changes to regulations. The governance of the program is assured by the Raw Material Sustainability Group (RMSG). →

THE COMMITMENT WE’VE MADE COVERS THE FULL VALUE CHAIN AND IS ALIGNED WITH THE PARIS AGREEMENT – WHICH AIMS TO LIMIT GLOBAL WARMING AND ENSURE THAT GLOBAL TEMPERATURE RISE DOESN’T EXCEED 1.5˚C ABOVE PRE-INDUSTRIAL LEVELS. THIS INCLUDES OUR OWN OPERATIONS (SCOPE 1 AND 2), AS WELL AS SCOPE 3 UPSTREAM AND DOWNSTREAM. SCOPE 3 COVERS PURCHASED GOODS AND SERVICES, APPLICATION AND USE OF OUR PRODUCTS, AND END-OF-LIFE.

A sustainable solution is a product that meets at least one of the following criteria:

Our sustainable solutions add value for our customers, as well as delivering economic value to all parties in the value chain. We identify the sustainability benefits of our solutions using our holistic Sustainable Product Portfolio Assessment (SPPA) framework. The sustainability benefits we offer our customers are grouped into the six People. Planet. Paint. chapters highlighted below.

Health and well-being: How we bring better well- being to customers through our products. Within our Dulux and Interpon system, we’re helping the building industry to reduce its impact on the environment, developing bacteria-busting powder coatings or designed a color scheme to help the well-being of those living with dementia. Reduced carbon and energy: How we’re tacking climate change and help our customers to do the same. We supply a coil coating system which is designed to reflect infrared energy, wood coatings that can increase manufacturing efficiency, and eat.reflective powder coatings can bounce the sun’s rays back off exteriors. Also, our reflective coating for light fixtures can help give up to 30% more output while specially engineered powder coatings can cure at energy-saving temperatures. We offer vehicle repair coatings that can dry faster and reduce energy use and help operators make substantial savings in fuel costs and CO2 emissions.

Less waste: How we’re striving to reduce waste in our value chain. We’re aiming to achieve 100% reusable waste by 2030. We’re also developing solutions to help our customers reduce waste in their own processes. We set new standards in sustainability through leveraging technology for automated spraying to reduce overspray and for powder coatings application process to produce virtually no waste at all. We are also offer more solids less waste for the marine market.

Reduce, reuse and renew: How we are combating resource scarcity such as using less materials. As part of our ongoing efforts to deal with resource scarcity, we’re using less materials and finding various ways to reuse and recycle our waste. These are reflected in Dulux and Sikken products which bring about high solids wood stain that requires only two coats instead of three, contain high level of paint residues or recycled content. Longer-lasting performance: How our durable products help customers lower cost and save resources. We develop durable products that protect surfaces for longer. This helps customers reduce costs, save resources, prolong maintenance cycles and keep things more colorful.

People & Communities: How we use our products and expertise to make living spaces more enjoyable. We’re committed to respecting human rights in all our operations and value. We use our products and expertise to support and transform communities around the world through projects including “Let’s Color” activities designed to make living spaces more enjoyable, renovating campaigns to restore and reserve heritages.

We’re always looking for new ways to drive sustainable innovation that brings tangible benefits, delivers a positive social and environmental impact, and enables our customers to reach their own sustainability goals. That’s why we focus on developing our portfolio of paints and coatings with sustainability benefits in our value chain and offering our customers one of the largest portfolios of sustainable solutions.

Making buildings greener: Buildings are responsible for 38% of global carbon emissions, which makes construction one of the largest contributing sectors to climate change. Most of us also spend a large part of our daily lives inside buildings, so they have an impact on our health and well-being as well. We supply a wide range of sustainable solutions that can help to reduce the environmental footprint – and increase the health benefits – of the built environment. As an industry leader committed to creating more green buildings, our product innovations can play a vital role in making cities and communities more sustainable.

Whether it’s in their design, construction or operation, “green” buildings reduce or eliminate negative impacts and can have a positive impact on our climate and natural environment. Green buildings have both commercial and sustainability benefits. They aim to reduce carbon emissions from the built environment, preserve precious natural resources and improve the quality of life for people who live and work in them.

Our solutions for green buildings: Helping buildings fight the heat island effect: As an industry leader developing products and technologies that help create more green buildings, our product innovations play a vital role to in making cities and communities more sustainable. Overall, building and construction is responsible for around 39% of global energy-related carbon emissions. If no action is taken to improve energy efficiency in the building sector, demand is expected to rise by 50% by 2050. We supply this industry with our “Keep Cool” technology. As well as providing ultimate protection outside, it can also cut inside temperatures by up to 5°C, reducing energy consumption and lowering the carbon footprint. Carbon savings in the production process: Our RUBBOL 100% UV cured exterior range of Sikkens wood coatings can cut drying time by up to 16 hours. This system helps save on production time and energy costs, while providing outstanding performance. In addition, because the range produces zero emissions and needs no mixing, the production process is more sustainable – another important factor for many of our customers.

Low-E energy efficient range: lower costs, improved carbon footprint: The Low-E collection from Powder Coatings is designed to reduce the curing temperature or curing time without sacrificing quality or performance. By using this range, our customers can cut their energy consumption and/or increase application productivity. This contributes to lowering costs, as well as improving their carbon footprint.

Longer-lasting performance: Throughout Sikken’s portfolio, we offer powder customers the simplest route to maximum corrosion, supply paints which can resist dirt and grease and keep walls looking pristine and provide increased productivity and longerlasting performance. ■

BUILDINGS ARE RESPONSIBLE FOR 38% OF GLOBAL CARBON EMISSIONS, WHICH MAKES CONSTRUCTION ONE OF THE LARGEST CONTRIBUTING SECTORS TO CLIMATE CHANGE.

About Akzonobel

We’ve been pioneering a world of possibilities to bring surfaces to life for well over 200 years. As experts in making coatings, there’s a good chance you’re only ever a few meters away from one of our products. Our world class portfolio of brands – including Dulux, International, Sikkens and Interpon – is trusted by customers around the globe. We’re active in more than 150 countries and have set our sights on becoming the global industry leader. It’s what you’d expect from the most sustainable paints company, which has been inventing the future for more than two centuries. About the Author Pamela Phua has been General Director of AkzoNobel Decorative Paints Vietnam since 2017. At the beginning of 2021, she was appointed to be Product Management Director, Decorative Paints - SESA, being instrumental in developing and maintaining a product portfolio that satisfies market demands and maximizes margins at competitive costs.

Before moving to head Vietnam Paints business, Pamela was the BU R&D Director & Global Director, Exterior Walls. In her 18 years stint in R&D, she has driven the business with new technology development and product implementation across the region, especially in Vietnam market and has successfully launched many innovative products including Dulux Weathershield / Powerflexx, Dulux Pentalite, Dulux Wash & Wear / EasyClean, Dulux Inspire/ Catylac by Dulux and Aquatech.

In her global capacity, Pamela implements the functional and production innovation strategy for exterior wall paint. She spearheads the RD&I functional excellence, standards and capability, and the efficient delivery of processes as the approved standards and processes across the globe.

Together with a special passion for sustainable development, she has led her teams to innovate paintings products and solutions through increasingly sustainable benefits for AkzoNobel customers and the environment. She also actively gets involved in sustainable activities in projects to create inspiring living spaces for local communities and to promote green architecture trends.

Pamela’s expertise and experience has been instrumental in the setting up of industry standards in Singapore. She is the President and Technical Chairperson for the Singapore Paint Industry Association and a management member in the Chemical Standards Council of Singapore. She contributed to the development of various Singapore Standards such as SS 345 (Specification for emulsion paints for decorative paints), SS500 (Specification for elastomeric wall coatings), SS150 (Specification for Emulsion Paints for Decorative purposes), SS 579 (Specification for water- based sealer for interior and exterior uses) and many others. Pamela currently leads Working Group for Fine Ceramics (for photocatalysis) and Waterbased Standards and participates in the Working Group for Energy Efficient Coatings. She is also an A*Star certified auditor for accredited laboratories in Singapore.

With a special passion for sustainable development, Pamela is actively involved in projects to create inspiring living spaces for local communities and to promote green architecture trends. She is an author for the G7&G20 summit publication advocating green developments. She is also a keynote speaker in United Nation climate Change Conferences.

Email: Pamela.phua@akzonobel.com Mobile: +65 90279663 Address: AkzoNobel House, 3 Changi Business Park Vista, #05-01 SDingapore 486051